12 reasons to not buy a house

roswell

Good Luck Andy,

Lets be honest your on the edge of a diving borad you can jump or walk back both have risks.

Buy within means and you wont have a poblem, over pay to limit / reduce risks.
or rent and spend it all but sitting on the fence your going to be there some time if you think that suddenly civil unrest is going to get you a cheaper house the cost of that will probnably be a house not worth living in if you believe in mad max theories.

Lets be honest here if Greece goes bust it makes no difference on my day to day life, if Portugal go bust .. still no differance, if italy goes bust .. im still living... UK goes bust Iv got a shelter to live in.

Financial issues dont really impact you, some time we have more, sometimes we spend more, sometimes we have less, sometimes we spend less but on the whole you cant put off your life for the hope of a catastrophy.

AndyGuil

roswell wrote: »

Good Luck Andy,

Lets be honest your on the edge of a diving borad you can jump or walk back both have risks.

Buy within means and you wont have a poblem, over pay to limit / reduce risks.
or rent and spend it all but sitting on the fence your going to be there some time if you think that suddenly civil unrest is going to get you a cheaper house the cost of that will probnably be a house not worth living in if you believe in mad max theories.

Lets be honest here if Greece goes bust it makes no difference on my day to day life, if Portugal go bust .. still no differance, if italy goes bust .. im still living... UK goes bust Iv got a shelter to live in.

Financial issues dont really impact you, some time we have more, sometimes we spend more, sometimes we have less, sometimes we spend less but on the whole you cant put off your life for the hope of a catastrophy.

It can go either way, the risk of failure of the system is high and this will have a negative effect on the market. I'm ready for either situation. Renting is a cheap and low risk position while things blow over. No point tieing yourself down, risking loosing or even worse getting into negative equity. You will get stuck if you need to move, even if you don't is the economic risk worth it. Things will get very messy if Greece fails (taking the Eurozone with it).

DJFearRoss

Another angle on this is that at the moment I and my wife have a job, so every year we can overpay our mortgage with some of our savings and we hope to pay it of alot quicker. This will give us a piece of mind that our children will always have a roof over their head.

It's not a question of putting all my eggs in one basket as a home is the most important thing. If we rent, yes we can always stash a bit of money to one side, but who knows what the future will hold (as many said). I feel i'm looking after my family better by buying than renting, whilst i can.

I also think the whole 'rent versus buy' thing, is alll irrelevant without any figures.

AndyGuil

DJFearRoss wrote: »

Another angle on this is that at the moment I and my wife have a job, so every year we can overpay our mortgage with some of our savings and we hope to pay it of alot quicker. This will give us a piece of mind that our children will always have a roof over their head.

It's not a question of putting all my eggs in one basket as a home is the most important thing. If we rent, yes we can always stash a bit of money to one side, but who knows what the future will hold (as many said). I feel i'm looking after my family better by buying than renting, whilst i can.

Renting is not a long term solution. It is a good short term solution particularly with the threat to the housing market from the Eurozone.

AndyGuil

MrReweird wrote: »

How long you been renting/waiting/putting your life on hold already?

Life not on hold, not sure what you mean by this? Renting for only a few years. The market is in a correction phase and has a long way to go yet. If the Eurozone goes under then I will wait (again life not on hold!?) and pick up a cheap house at the other end with a bigger deposit. If the Eurozone wake up and start printing money to get themselves out of this then I will buy.

robmatic

EricKing wrote: »

Correct me if I am wrong but if you are on an interest only mortgage then you are really just renting off the bank.

The bank is laughing because you are responsible for upkeep and repairs.

If you rent off a LL, you just ring up when you need a new washing machine or fridge freezer ect etc.

Not to mention gas saftey checks and property insurance.

Who's talking about IO mortgages? They're pretty much off the market now anyway.

Buying with a repayment mortgage will in all likelihood leave you better off than renting.

robmatic

EricKing wrote: »

Dont we all.

My best guess, is interest rates will go back to normal in about 2 years. So the bottom of the crash will be around 2014/15 when all the repossessions have been cleared out.

No rush in at the bottom though property values will stay down for a long time because of the converging perfect ecconomic storm brewing.

No big deal as far as I'm concerned.

chucknorris

EricKing wrote: »

Correct me if I am wrong but if you are on an interest only mortgage then you are really just renting off the bank.

The bank is laughing because you are responsible for upkeep and repairs.

If you rent off a LL, you just ring up when you need a new washing machine or fridge freezer ect etc.

Not to mention gas saftey checks and property insurance.

No not renting, paying interest, for example like the interest of £135/month that I pay for a 3 bed flat in Battersea, the rent I receive for that flat is £1,700/month.

About £300/month pays for those items (and the rest) that you mention above, the remaining £1,265/month is profit. My tenants might contact me for new white goods occassionally but it's their rent that is paying for them.

Mallotum_X

Im trying to work out if this is real or a spoof list...

B_Blank wrote: »

1, Dont have to get buildings insurance
2, Dont have to pay to repair things like water leaks/the roof
3, If they build a nuclear power station next door you can just move
4, if they build a land fill site next door you can just move
5, if the area turns into a ghetto with high crime you can just move
6, You can search for work across a wider geographical area
7, Your not tied down to a single location for 30 years
8, you dont have to pay interest to a bank for 30 years
9, If you neighbours are awful you can just move
10, You dont have to worry about subsidence and other such issues
11, You dont have to worry about the bank/government raising the interest rates you pay
12, You never have to go through the whole buying/selling process which is a nightmare and very expesnive

Simple, just rent and put a portion of your portfolio into property funds. Then your exposed to property so you wont "miss the boat" if there is a dramatic increase in prices, but at the same time you dont have the annoyance of owning a home.

roswell

A list of 12 reasons to buy a house at any point in time.

1) you need somewhere to live.
2) there is a risk with every purchase in your life that you will over pay.
3) its yours and the banks, banks dont want houses they want money, if you cant pay the bills you still have 6 months before they can kick you out. (reality if reach the point of nominal income as long as you contribute you wont be removed from the property (e.g £1 a week) )
4) its your house, you can add to or subtract from it what you want, you can change the skirting board / doors / room lay outs.
5) Once you start paying the mortage your debt liability starts reducing.
6) in 20 years time your house will be worth more than you paid for it 95% of the time
7) Greeks going bankrupt arent going to cause you to loose your house.
8) If you wish to move somewhere else you sell your house your house is only ever worth what someone will pay for it at that point in time ( same as your car you fridge your PC and your mobile phone )
9) Houses will eventualy crash they will also recover, as will stock markets and gold prices and anything else that sufferes panic purchasing.
10) just because your house was worth £10 million yesterday and £10 today doesnt mean you want / need to sell your house.
11) Its a house buy one when ever you want they are always for sale there isnt a shortage
12) over pay your debt obligations and you will reduce your risks (in any market).